The India Fund (NYSE:IFN) and Goldman Sachs BDC (NYSE:GSBD) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
Analyst Recommendations
This is a summary of current recommendations for The India Fund and Goldman Sachs BDC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The India Fund | 0 | 0 | 0 | 0 | N/A |
Goldman Sachs BDC | 0 | 2 | 1 | 0 | 2.33 |
Goldman Sachs BDC has a consensus price target of $15.9167, indicating a potential downside of 21.71%. Given Goldman Sachs BDC's higher possible upside, analysts plainly believe Goldman Sachs BDC is more favorable than The India Fund.
Institutional & Insider Ownership
23.4% of The India Fund shares are held by institutional investors. Comparatively, 13.8% of Goldman Sachs BDC shares are held by institutional investors. 0.3% of Goldman Sachs BDC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares The India Fund and Goldman Sachs BDC's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The India Fund | N/A | N/A | N/A | N/A | N/A |
Goldman Sachs BDC | $147.26 million | 14.03 | $36.15 million | $1.98 | 10.27 |
Goldman Sachs BDC has higher revenue and earnings than The India Fund.
Profitability
This table compares The India Fund and Goldman Sachs BDC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The India Fund | N/A | N/A | N/A |
Goldman Sachs BDC | 9.56% | 11.79% | 4.83% |
Dividends
The India Fund pays an annual dividend of $1.96 per share and has a dividend yield of 9.4%. Goldman Sachs BDC pays an annual dividend of $1.80 per share and has a dividend yield of 8.9%. Goldman Sachs BDC pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The India Fund has raised its dividend for 1 consecutive years and Goldman Sachs BDC has raised its dividend for 1 consecutive years.
Risk and Volatility
The India Fund has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Goldman Sachs BDC has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
Summary
Goldman Sachs BDC beats The India Fund on 8 of the 11 factors compared between the two stocks.